From ANZ:
Physical iron ore prices firmed 2.0% to USD120/t. It was another positive day for iron ore swaps (IOS), with prices rising again across the curve. SHFE rebar futures also firmed, with the most active Oct13 contract up 1.3% to RMB3,526. IOS prices pushed higher amid reports of firmer physical deals and ongoing gains in the Baltic capesize index. The Baltic capesize index has rallied 31% since the beginning of June to the highest level since December last year. However, the positive performance in iron ore markets has not translated into better coking coal prices. FOB Australia coking coal prices fell USD1.20/t to USD135.4/t, about a 4-year low. Markets are reportedly avoiding spot trades while waiting for July and third quarter term contracts to be finalised.
